(Yicai Global) Feb. 9 -- Sinomine Resource Group soared by the exchanged-imposed limit after the Chinese mining services provider said it spent USD180 million to gain control of a Zimbabwean mine project which will increase its reserve of lithium ores.

Sinomine [SHE: 002739] was trading up 10 percent at CNY64.24 (USD10.10) as of today’s lunch break.

Sinomine’s Hong Kong unit inked an agreement to buy a 100 percent stake in Mauritius’ African Metals Management Services and Southern African Metals and Minerals on Jan. 29, the Beijing-based parent company said in a statement yesterday. The two firms own a 74 percent stake in Bikita Minerals, whose major asset is the Bikita lithium mine project in Zimbabwe.

The acquisition is still to be subject to the review of the governments of China, Mauritius, and Zimbabwe, Sinomine added, noting that once the internal restructuring and share repurchase of Bikita Minerals is completed, it will increase its stake to 100 percent.

The Bikita lithium mine project, which is located in the Masvingo province, has been actively mined for over 100 years. Its main products are technique-level petalite concentrates and pollucite concentrates with high- and low-impurity levels. It is said that the collectively discovered reserves of lithium ores in the Bikita lithium mine reach about 29.4 million tons.

Sinomine has been engaged in the geological exploration business in Zimbabwe since 2004 and established a unit in the southeastern African country in 2009, so it is very experienced in working there, the company said. It also focuses on the businesses of mining and mineral beneficiation, it noted.

Sinomine expects profit to have grown 186.9 percent to 221.4 percent to between CNY500 million and CNY560 million (USD78.6 million and USD89 million) last year from 2020.

Editor: Futura Costaglione